Commodities under the shadow of Geopolitical risks – ABN AMRO

According to analysts at ABN AMRO, the attack on Saudi oil infrastructure facilities reminded the market of possible impacts of geopolitical risks.

Key Quotes

“Although the existing downside price risks for oil did not vanish, geopolitical risks led to increased upside price risks. As a result, oil prices seem to be caught between extremes.”

“We think gold prices may have found too much support. A profit taking wave could easily push prices back towards our expected 1,400/ton at the end of the year.”

“The trade conflict and high inventories cap the upside for base metals, especially for aluminium, copper and zinc. Loose monetary policy should be supportive, but mainly into 2020.”